For BT Group's BT TV streaming service, should we prioritize acquiring exclusive content rights or improving the user interface and app performance?

Introduction

For BT Group's BT TV streaming service, we're facing a critical trade-off between acquiring exclusive content rights and improving the user interface and app performance. This decision will significantly impact our competitive positioning, user acquisition, and retention strategies. I'll analyze this trade-off by examining the product ecosystem, key metrics, and potential experiments to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about BT TV's current market position. Could you share our current market share and how it compares to major competitors like Sky and Virgin Media?

Why it matters: Helps understand the competitive landscape and urgency of our decision. Expected answer: BT TV has a smaller market share, around 10-15%. Impact on approach: Lower market share might prioritize user acquisition through exclusive content.

• Business Context: Based on our revenue model, I assume subscription fees are our primary income source. Is this correct, and how significant is ad revenue for BT TV?

Why it matters: Influences whether we should focus on subscriber growth or engagement for ad views. Expected answer: Subscription fees account for 80% of revenue, ads for 20%. Impact on approach: Might lean towards UI improvements for better engagement if ad revenue is significant.

• User Impact: I'm curious about our user demographics. Are we primarily serving younger, tech-savvy users or a broader, more traditional TV audience?

Why it matters: Different user groups may value content vs. usability differently. Expected answer: Mix of demographics, skewing slightly older. Impact on approach: Might prioritize ease of use and performance for an older audience.

• Technical: Regarding our current app performance, what are the main issues users are experiencing? Are we seeing high buffering times, crashes, or navigation problems?

Why it matters: Helps quantify the potential impact of UI/performance improvements. Expected answer: Some buffering issues and navigation complaints. Impact on approach: If severe, might prioritize app improvements over content acquisition.

• Resource: Can you give me an idea of our budget allocation between content acquisition and technical development?

Why it matters: Understand our financial flexibility for each option. Expected answer: 70% content, 30% technical development. Impact on approach: Might suggest rebalancing if technical issues are significant.